Market segmentation

Breaking the potential market into different parts based on a common characteristic, e.g demographics

Market share

A certain business's share of total sales

Marketing

Any activity designed to plan, price, promote and distribute goods and/or services

Resource Markets

Business that purchases factors of production in oder to make other products - land, labour, capital & enterpise

Industrial Markets

Provides products needed to manafacture final products

Intermediate Markets

Businesses which buy good to sell to retail customers

Consumer Markets

Buyers who purchase goods & services for personal use

Mass Markets

The large number of customers who want a standard product e.g. electricity or petrol

Niche Markets

Buyers with specialised needs

Marketing Concept

Sucess = total focus on customer satisfaction

Elements of a Marketing Plan

1. SWOT

2. Product life cycle

3. Establishing marketing objectives

4. Identifying marketing strategies

5. Developing marketing strategies

6. Implementation, moitoring & controlling

SWOT analysis

Strengths

Weaknesses

Opportunities

Threats

Product Life Cycle

1. Introduction

2. Growth

3. Maturity

4. Decline

 Marketing Objectives

•  Specific

•  Measurable

• Realistic

Identify Target Markets

• May require market reseach first

Target market= group of actual or potential buyers

Developing Marketing Strategies

• Product

• Price

• Promotion

• Place

Product

Not just the physical good or service includes additional features e.g. warranty & after sales servies

Price

The money the customer pays

Promotion

Activities used to communicate with customers e.g. advertising, publicity, competitions, free samples etc.

Place

• Distribution tactics

Includes physical distribution e.g. tracks, trains, warehousing but also which retail stores to stock

Implementing

Process where marketing plans are put into operation

Monitoring

Watching what happens when the product is placed in the market

Controlling

Process of comparing planned results wtih actual results

Types of Customers

• People & households
• Firms
• Educational institutions
• Government
• Religious organisations

Influences of Customer Choice

1. Psychological factors

2. Socio-cultural factors

3. Economic factors

4. Government factors

Market Segmentation

Segmentation based on:

• Gender

• Age

• Income

• Lifestyle

Pricing Methods

1. Cost

2. Market

3. Competition based

Pricing Strategies

• Skimming

• Penetration

• Loss leaders

• Price points

Skimming

Bussiness sets relatively high price then lowers it over time.

Penetration Strategies

Business sets lower price than competitors in order to increase market share

Loss Leaders

Prices set very low to encourage consideration of a product. Must be careful not to bait

Price Points

Psychological strategy. $9.99

Promotion Strategies

• Personal selling

• Advertising

• Below-the-line-promotion

• Public relations

• Communication process

Personal Selling

Sales representatives, displays, rakcs, stands & posters

Advertising

Paid communication with customers through media

Below-the-line Promotion

Non-media promotions- includes vouches, loyalty cards

Public Relations

Efforts to present the business in a positive light

Communication Process

This builds customer relationships and gains loyalty

Place/ Distribtion Strategies

• Distribution channels

• Channel choice

• Physical distribution issues

Distribution Channels

Links between manafacturer & final customer

Channel Choices

1. Intensive

2. Selective

3. Exclusive

Intensive Distribution

Manafacturer distributes to as many outlets as possible e.g. Coca Cola

Selective Distribution

Manafacturers want to widely distribute product e.g. groceries, clothing & furniture.

Exclusive Distribution

Used for products positioned at the top of the market

Physical Distribution Issues

1.Transport

2. Warehousing

3. Inventory

Transport

• Standarised packaging
• Automatic 'roll on, roll off' for loading & unloading
  

Warehousing

• Must keep up to date with technology
• Totally automated
• Able to hold & distribute large amounts of product
  

Inventory

• Product stored ready for when customer wants it
• A part of customer service